Economic development organizations across Michigan are buzzing about a recent report published this past week. According to the report, Michigan companies have experienced a 27.7 percent decrease in workers’ compensation costs since 2011. Since local companies are the ones that fund the state’s workers’ compensation insurance system, economic groups intend to use these stats to encourage new companies to set up shop here in Michigan.
To be sure, the cost of workers’ compensation is not minor or irrelevant to a business, especially for higher risk industries. In fact, the percentage savings noted in the report resulted in $277 million back in the pockets of local companies. Such savings are resulting in increased investment in Michigan and higher wages for local workers.
The good news, however, must be tempered with the realization that lower premiums mean less benefits are being paid. While much of this has to do with increasing efficiencies, there is some concern that the lowering premiums mean stricter tests to qualify for benefits.
Local workers’ compensation lawyers in the Saginaw area have monitored the changes to the system closely over the past few years. They know how the workers’ comp system is administered and operated. As a result, their assistance is key for anyone seeking medical expenses or lost wages as the result of a workplace injury or condition.
Without their help, workers’ claims may be denied or severely limited by various cost saving measures that have been implemented in the past several years. Anyone injured at work or suffering a nagging condition brought on by a workplace routine may want to get more information.
Source: Crain’s Detroit Business, “Workers’ compensation rates drop again in Michigan,” Chris Gautz, October 14, 2014